Need fast finance for a commercial property? Here's how commercial bridging works.
A commercial bridging loan is short-term secured finance for non-residential property — offices, retail units, warehouses, mixed-use buildings, and land with commercial potential. Like residential bridging, it's designed for speed when standard commercial mortgages are too slow.
Commercial bridges are unregulated by the FCA (unless the property is a dwelling), which means lenders have more flexibility but borrowers have fewer protections.
💡 If buying commercial property at auction, remember that VAT may be payable on top of the purchase price. Ensure your bridging facility covers this if needed.
Commercial bridging rates typically range from 0.55–1.5% per month, slightly higher than residential bridging. Maximum LTV is usually 65–70% of the property's open market value.
Arrangement fees of 1.5–2% are standard, and legal costs tend to be higher than residential due to the complexity of commercial conveyancing.
Commercial bridging lenders will assess the property type (some sectors are considered higher risk), the borrower's experience, the exit strategy, and the overall financial position.
Unlike residential bridging, commercial bridges may require a personal guarantee from the borrower or company directors, meaning personal assets could be at risk if the loan defaults.
⚠️ Commercial bridging loans are unregulated, so you don't have the same FCA protections as with residential bridging. Read the terms carefully and get independent legal advice.
A specialist commercial finance broker can navigate the more complex world of commercial bridging and find competitive terms. Get matched with a bridging specialist through Nesto.
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